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Problem 6 Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 46,000 Sales tax 2,300 Freight charges for shipment of equipment
Problem 6 Oaktree Company purchased new equipment and made the following expenditures: |
Purchase price | $ | 46,000 | |
Sales tax | 2,300 | ||
Freight charges for shipment of equipment | 710 | ||
Insurance on the equipment for the first year | 910 | ||
Installation of equipment | 1,100 | ||
The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. |
Required: | |||||||||||||||||||||||||||||||||||||
Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | |||||||||||||||||||||||||||||||||||||
Journal entry worksheet Transaction Index : Record the purchase of equipment. Record any expenditures not capitalized in the purchase of equipment. Note: Enter debits before credits.
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